This is certainly a topic I’ve written on in the past. I’ve covered Trulia’s data on Rent vs Buy. Also, JLL’s stats. Before the last election, most experts agreed that promoting home ownership was a priority. Heck, I even talked about how there just aren’t very many houses for rent in Louisville. One thing is certain, trying to decide between renting vs buying can be a challenging decision!
So, I wasn’t super surprised to read the following subject in my morning email inbox:
Louisville Sees Highest Y-o-Y Rent Increase and Holds Strong as Kentucky’s Most Expensive Rental MarketRENTCafe Blog
The rental situation here in Louisville is even worse than I thought.
Renting vs Buying: Louisville Rents Are Rising Fast
Once I opened the email and clicked the link, I found that rental rates in Louisville are definitely rising. Louisville is the most expensive city in for renters in the state but I already knew that. Of course, the price of buying a home is rising as well. You will want to consider all the data before moving in one direction or the other. Here are the rent numbers on our most current month.
Those increases are steep! Especially compared with other parts of the country. (Obviously, not New York City or San Francisco but you get the idea.) To be fair, home prices have risen by more than our regular 4% per year during 2017-2018. You always want to take a snapshot of any given moment and then compare apples to apples.
Also, while homeowner’s insurance compares somewhat to renter’s insurance don’t forget to include costs for owning a home that renters don’t incur. If I haven’t mentioned this lately, it always pays to shop around for insurance. Especially, homeowner’s because most people rarely change it once they’re all signed up. I have a recommended broker who shops around on your behalf. If you’d like his information just click the Contact Us button in the nav bar.
Buying in Louisville Is Much Better Investment
In most cities across the country, buying will be a better investment for most people. There are important factors:
- How long you plan to stay in the home?
- What are the attributes of the home that you need?
- How many of these types of properties are currently availability?
- What will the expected sales price be?
Most of the time, buying a home will save you thousands of dollars. This is made by the home’s appreciation, the added money towards the principle and a reduction in taxes. Working with an expert local Realtor is crucial in order to help you choose between renting vs buying.